Tuesday, January 04, 2005

Supply and Demand

With the start of the New Year, the minimum wage in Illinois was raised to $6.50 an hour, applicable to all businesses employing more than 4 workers. Governor B. rallied the proletariat by telling them that this was just the beginning, and they deserve more than that.

He conveniently forgot to mention that this applies only to those who manage to keep their jobs despite the government-mandated pay increase. I'm no economist, but I was required to suffer through a semester of economics when I was an undergraduate, and I distinctly recall the professor droning on about supply and demand. When the price of widgets is cheap, they become scarce; inversely, expensive widgets result in a widget glut.

Too bad I didn't hang on to my econ notes. I could've loaned them to Governor B. when he tries to figure out why unemployment in Illinois went up in 2005....

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